Employment Practices Liability Protection: Your Small Business Needs This Coverage

Employee-employer disputes are routine, and in most instances, they can be resolved with a simple conversation. However, in some cases, the concern on the part of an employee is more severe, and he or she sees a lawsuit as the only means to resolve the matter. For unfortunate scenarios like this, employment practices liability insurance, or EPLI, becomes a vital source of protection for employers.

Employment Practices Liability Insurance

Employers, be it a small business or a large corporation, have a great deal of duty when it comes to their employees. Employers aren't only responsible for providing employees with wages for their labor, but also to treat these individuals fairly, provide a safe, discrimination-free environment, and to take any concerns brought forward by an employee seriously. 

If an employee does not feel like these responsibilities have been met, they do have a legal right to file a lawsuit against their employer for a workplace violation. EPLI is a form of coverage that helps safeguard your business from the financial liabilities that come from these types of legal issues. Whether the nature of the lawsuit is a claim of sexual harassment, wrongful termination, racial discrimination, or another matter, the extra protection can be activated.

Validity Does Not Matter

One element that makes the American justice system so balanced is the fact that every individual has a legal right to file a lawsuit, even if the source of their claim isn't valid. Consequently, you might be hit with a complaint of an employment place violation from an employee, even if you are not, in fact, guilty of the accusation. A unique thing about the EPLI coverage is that it can also be used to help you cover the cost of defending a frivolous lawsuit. 

Fault Protection

At the same time, there are instances when a violation against an employee was not the intended outcome. For example, a manager might have dropped the ball or not followed through with a process as required, and the result is a rightfully disgruntled employee. Even in the event your business loses the lawsuit, the EPLI coverage can be used to help you cover the cost of the judgment or settlement. However, if the employee is awarded punitive damages, this type of protection does not typically cover this expense. 

Complete coverage for your business is essential. From employment practices liability insurance and beyond, speak to a trusted agent about all the commercial insurance options available. Visit a site like http://gateway-insurance.com to learn more.